OAKBROOK TERRACE, Ill., May 23 (UPI) -- Redbox announced Friday that it will uninstall 500 of its DVD/Blu-ray rental kiosks on the back of declining sales and the rise of online streaming sites.
The company said its revenues grew by just three percent, and its projection for 2014 doesn't look very encouraging. Blu-rays, which were introduced recently, now account for 15 percent of disc rentals, and video games represent only three percent.
Apart from the flat growth estimates, Redbox said it is also finding it difficult to find new locations for its signature bright red kiosks, having already hit saturation across most major U.S. supermarkets. Redbox attempted to compete with online streaming sites, such as Hulu and Netflix, by introducing the Redbox Instant service, which gives subscribers added perks like in-store rental credits.
The company also dabbled at selling concert and event tickets through the machines, but had to give up the idea within a year.
